Dynatrace shares tumble despite earnings beat
Investing.com -- Dynatrace Inc. (NYSE: DT) shares plunged over 10% premarket on Wednesday after the company reported its latest quarterly results.
Fourth quarter adjusted earnings per share came in at $0.41, beating the analyst estimate of $0.39, while revenue of $532 million surpassed the consensus of $521.02 million. Revenue increased 19% YoY, or 16% on a constant currency basis.
The company projected full-year ARR of $2.38-$2.40 billion, representing 15.5%-16.5% constant currency growth. This marks a deceleration from the 16% constant currency ARR growth achieved in the fourth quarter, which the company noted was its fourth consecutive quarter at that level. The company surpassed $2 billion in ARR during the quarter.
"Dynatrace delivered a strong finish to FY26, surpassing $2 billion in ARR and achieving our fourth consecutive quarter of 16% constant currency ARR growth," said Rick McConnell, CEO of Dynatrace. "As we look ahead, our objective is to accelerate ARR growth while delivering balanced growth and profitability."
For the first quarter of fiscal 2027, Dynatrace expects adjusted EPS of $0.44-$0.45, with the midpoint of $0.445 in line with the consensus of $0.45. First quarter revenue is projected at $547-$551 million, with the midpoint of $549 million slightly above the consensus of $548.2 million.
For fiscal 2027, the company sees adjusted EPS of $1.93-$1.95, with the midpoint of $1.94 significantly above the consensus of $1.68. Full-year revenue guidance of $2.32-$2.33 billion has a midpoint of $2.325 billion, slightly above the consensus of $2.31 billion.
